Semiconductor market forecast

According to the report by Hyundai Research Institute (HRI), Asia's fourth-largest economy is forecast to expand 2.8 percent this year, and experience more sluggish growth in 2019, as the economy as a whole copes with a "period of recession." Consumers go shopping at a supermarket in Seoul, South Korea This year's estimate is lower than 2.9 percent forecasts made by the government and the Bank of Korea, while next year's figure is also more conservative than that made by the government, the central bank, and the Organization for Economic Cooperation and Development (OECD). Seoul and the OECD predicted the country could pull off 2.8 percent growth next year. "Chances are that the global economy will be stagnant next year, which would cause local exports to decline and dull investment and consumption," the institute said in the report. Private consumption is forecast to expand 2.7 percent this year and 2.5 percent for 2019, the HRI said, citing a slower-than-expected … [Read more...] about South Korea”s economy forecast to expand 2.8 pct this year

Samsung Electronics has forecast a 60% fall in quarterly operating profit from a year ago, missing estimates, because of slowing Galaxy smartphone sales. The world's biggest mobile phones and TV maker said it expects an operating income of 4.1tn won ($3.8bn; £2.5bn) for the three months to September. That is below analysts' expectations for earnings of 5.2tn won. The company's full financial results will be released later this month. Samsung's mobile division, its biggest business, has been struggling to maintain its dominance against rivals such as Apple and Chinese smartphone-makers Xiaomi and Lenovo. Its flagship Galaxy smartphone line has been losing market share to cheaper models that also have large screens and multiple features. The South Korean company said quarterly sales amounted to 47tn won, which was below analyst estimates for 50.3tn won. "Smartphone shipments increased marginally amid intense competition," Samsung said in a statement. "However, the operating … [Read more...] about Samsung Electronics forecasts 60% fall in quarterly profit

Vung Tau approves 30 new projects
The southern province of Ba Ria – Vung Tau granted licences to 30 new projects worth a combined US$521 million since the beginning of the year, according to the provincial Department of Planning and Investment.
Eleven of the 30 projects include foreign investments. During this period, the province also revoked the investment licences of four sluggish projects capitalised at $36 million, the department said.
New SSC draft guidelines to continue margin lending ratio
In its draft guideline on margin trading issued on Thursday, the State Securities Commission would continue to restrict the margin ratio to 30:70 – a ratio market insiders are saying is too restrictive.
Under the guideline, brokerages would be able to loan up to 30 per cent of the value of a securities transaction, while the investor would be required to front the remaining 70 per cent.
"The proposed margin ratio of 30:70 is too conservative and doesn't truly reflect the … [Read more...] about BUSINESS IN BRIEF 20/6

Running short of dramatically new phone designs, leaders of the world's wireless industry agree their next big idea is 5G, shorthand for the fifth generation of networks they expect to have up and running by 2020. But first they'll have to decide what 5G needs to do that the current, fourth generation of wireless networks will never offer. "It is unclear what the opportunity or weakness that 5G should address is," researchers at GSMA, the global trade group of mobile network operators, said in a report issued in December that punctured some of the more visionary claims for 5G. There is simply no need for the industry to spend heavily on new network gear or force consumers to upgrade phones unless the new generation of wireless radio standards actually delivers radical improvement in speed or functions, mobile operators say. With discussions on setting 5G technical standards yet to begin, a final standard is expected in 2019, experts say. That will not stop network equipment makers such … [Read more...] about Mobile industry tiptoes towards 5G

The surging value of the U.S. dollar may be posing the biggest threat to U.S. corporate earnings since the 2008 financial crisis, hurting results at most U.S.-based multinationals. Some on Wall Street are even talking about an earnings recession. The dollar’s gain of 22 percent in the past 12 months against a basket of major currencies has landed a double whammy on U.S. companies with big sales abroad. Revenue and earnings from foreign markets are worth less when translated into greenbacks and their costs become relatively less competitive against rivals producing in countries with declining currencies. Dollar moves of this magnitude in the past have resulted in what Bank of America/Merrill Lynch strategists term an "earnings recession," which is generally defined as at least two successive quarters of declining earnings from the year-earlier quarters. The brokerage says that a 25 percent gain in the U.S. dollar in a 12-month period has historically coincided with a 10 percent … [Read more...] about U.S. multinationals set to face much more pain from strong dollar